Shanghai Transportation Commission has issued Uber and Yongchewith a RMB100,000 fine each last week which neither car-hire apps have paid yet.

After fining Didi-Kuaidi for the first time in January this year, the Law Enforcement Department of Shanghai Transport Municipal Transportation Commission has struck again at chauffeur service platforms when it issued Uber and Yongche with a RMB100,000 fine each last week. As of now, neither car-hire apps have paid the fines yet.

Shanghai Transport Commitee and Police on a dragnet search for unliscensed chauffeurs

“We fined Uber and Yongche for listing unlicensed vehicles for service,” a Shanghai Transportation Committee spokesperson said. The committee said it decided to issue the fines following preliminary investigation, inspection and discussions with the two chauffeur service platforms.

“Yongche has applied for a hearing but Uber hasn’t contested the fine, and neither have paid the fine yet,” the spokesperson said.

Didi-Kuaidi was similarly fined RMB100, 000 by the Transportation Committee for using private vehicles on a commercial enterprise platform.

This year, the Shanghai Transportation Committee has joined hands with the Public Security Bureau to conduct dragnet searches online for illegal activities within the chauffeur service sector. The searches have already turned up 225 illegal chauffeur vehicles from January to July.

Drivers found guilty by the Transportation Department of conducting illegal transportation activities via online platforms will not only be fined RMB10,000 but will also have their drivers' licenses suspended for three to six months by the Department of Traffic Police in accordance with regulations. However one member of the Traffic Committee has revealed that many car-hire platforms have found ways around the license suspension for their “illegal drivers” and can get off with only a fine. “In this case, the cost of a fine every time a driver gets caught is much lower than the profits to be made, and so the activity continues unchecked,” he said.

A Transport Committee official said penalties for violations must be stiffer in the future as the horde of illegal chauffeurs operating online cannot be stamped out with the current methods of investigation and fines.(Transaltion by David)